Loan Scenario: #
American Heritage Lending recently funded this Fix to Rent loan in Santa Fe, New Mexico. Using AHL’s industry-leading one-time close product, this investor was able to have the purchase and renovation funded with a loan that will convert to a permanent DSCR loan once the rehab is completed – all without a second closing!
The subject property was purchased for $254,000 with a rehab budget of $40,000 against an After Repair Value of $401,000. The scope of work for renovating this 1,165 square foot single family home includes a new HVAC system, gutting the kitchen and bathrooms, as well as new paint, flooring, and fixtures throughout.
The initial bridge component of the loan was funded at over 98% LTC, and once the property is renovated the borrower expects it to rent for $2,300 per month leaving the property cashflow positive at a 1.15x DSCR.
Key Deal Points #
| Address | Santa Fe, NM |
| Loan Type | Fix To Rent |
| Borrower Profile | Experienced Investor |
| Property Type | Single Family Detached |
| Purchase Price | $245,000 |
| Rehab Budget | $40,000 |
| After Repair Value | $401,000 |
| Loan Amount | $280,700 |
| Loan To Cost (LTC) | 98.5% |
| Loan To ARV (LTARV) | 70% |
| DSCR After Reno | 1.15 |